I work with Sage Intacct customers every day, discussing their business needs and pain points. This week’s Wednesday Wisdom focuses around cash flow.
You’ve probably heard the expression “Cash is King” a million times, however it is so important to the vitality of our business needs. The article, The Critical Differences Between Cash Flow and Profit by Inc.com, states: “There is a common misconception among many business owners that profits and cash flow are the same thing. They are not. For a business to thrive, it must generate profits while also operating with positive cash flow. The two terms represent different financial parameters, but in order to thrive, every entrepreneur must have a solid system to keep track of both.” It’s so true. Cash needs to be defined and tracked the right way, no matter what business we run or industry in which we thrive. While it might be tempting and easy for some to confuse profits with cash flow, here’s some information that I found particularly interesting in helping to shed some light on the differences. As always, your feedback is more than welcome!